Struggling Big Tech Puts More Pressure on Markets

The communications sector is bucking today's broad-market selloff

Deputy Editor
May 17, 2021 at 12:03 PM
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The Dow Jones Industrial Average (DJI) is off 163 points midday as Big Tech's march lower resumes, pouring cold water on the broader market. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are also registering notable drops. Last week's Consumer Price Index (CPI) jump still looms, stoking inflation fears that have gripped Wall Street for months now. The communications sector is one of the few spaces brushing off today's broad-market downfall amid news that Discovery (DISCA) and AT&T (T) are planning to merge HBO parent Warner Media and the Discovery into its own public company.  

Continue reading for more on today's market, including:

  • Why one analyst sees Cummins stock being a strong bet for bulls. 
  • The technical trouble that could be keeping a lid on Hostess shares post-earnings.
  • Plus, CVM blasted by option bears; NKLA gets halo lift; and Elon Musk tweets turn RIOT volatile. 

midday market stats may 17

CEL-SCI Corporation (NYSE:CVM) is seeing an uptick in options activity today. So far, 3,315 calls and 4,625 puts have crossed the tape -- double the intraday average. The most popular is the May 5 put, followed by the 7.5 put in the same series. CVM is down 13.1% at $19.41, though the reason for the dip is not entirely clear. Nevertheless, the equity is headed for its lowest close in nearly a month, though the 100-day moving average seems to be containing some of this pullback. 

One of the best performing stocks is electric automaker Nikola Corporation (NASDAQ:NKLA). The security is up 9.9% at $13.32, extending its Friday gains and vying for its first close atop the 50-day moving average since Feb. 24. A halo lift from the broader electric vehicle sector on Friday is likely the catalyst for today's jump, though NKLA still sports a 12.9% year-to-date deficit. 

nkla may 17

Meanwhile, Riot Blockchain Inc (NASDAQ:RIOT) is one of the worst performing stocks on the Nasdaq, off 9.2% at $23.68 at last check. A sector selloff is weighing on the equity after a slew of tweets from Tesla (TSLA) owner Elon Musk stating that the company would no longer accept bitcoin for car purchases, turned the crypto space volatile. RIOT was pressured lower by its 20-day moving average earlier this month, though it still sports a 42.7% lead for the year.  

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